- Defence company Chemring reported a rise in annual profit as improved margins offset a fall in revenue owing to a stronger pound.

For the year ended 31 October, pre-tax profit rose to £48.8 million from £43.3 million year-on-year, while revenue fell 2% to £393.3 million.

Underlying operating margin rose to 14.6% from 13.6%, primarily reflected the growth of the higher margin sensors & information segment and the continued focus on improved operational execution throughout the group, particularly at the UK countermeasures site, the company said.

The company implemented a new policy to target a medium-term dividend cover of about 2.5 times underlying earnings per share.

The final dividend was increased by 23% to 3.2 pence, giving a total dividend of 4.8 pence for the year.

Looking ahead, the company said its expectations for 2022 were unchanged.

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